Senate Committee Commends Customs Reforms as NCS Surpasses Revenue Target, Seeks Approval of 2026 Budget
The Chairman of the Senate Committee on Customs, Senator Jibrin Echuochuo, has commended President Bola Tinubu for his unwavering support for the ongoing reforms in the Nigeria Customs Service (NCS), saying the administration’s patience, confidence and commitment have strengthened revenue generation, boosted investor confidence and improved economic activity.
Speaking during the defence of the Nigeria Customs Service’s 2026 budget proposal before the Senate Committee, Senator Echuochuo said the President remained steadfast despite the challenges associated with the reform process.
He noted that the reforms have delivered tangible results, including improved revenue generation, increased participation in the economy and stronger investor confidence.
The lawmaker also appreciated President Tinubu for approving a six-month extension of the Service’s mandate, describing the decision as an opportunity to consolidate ongoing reforms and deliver greater results.
According to him, continuous consultations between the Committee and the Nigeria Customs Service have helped strengthen revenue generation while accelerating infrastructure development aimed at improving connectivity, facilitating trade and delivering lasting benefits to Nigerians.
He stressed that tax revenue remains one of the Federal Government’s major sources of income and urged sustained commitment to implementing key projects and reforms throughout 2026.
Presenting the Service’s budget performance, the Comptroller-General of Customs disclosed that the NCS exceeded its revenue target for the review period, generating ₦7.27 trillion between January and May against a target of ₦6.5 trillion.
He explained that the performance represented a 10.2 per cent increase over the corresponding period in 2025 despite several policy and economic challenges.
According to the Customs boss, the suspension of the proposed excise duty on telecommunications services and the non-implementation of the Green Tax significantly affected projected revenue. He added that duty waivers granted on essential imports, including food items, medical supplies, machinery and petroleum products, also reduced customs collections in support of the Federal Government’s economic relief measures.
He revealed that imports covered by the duty waivers were valued at approximately ₦34.5 trillion, while only four of the eleven proposed excisable products were implemented during the period, limiting expected excise revenue.
The Comptroller-General further noted that global developments, including the Russia–Ukraine conflict and the emerging tensions involving Iran, the United States and the Strait of Hormuz, have continued to disrupt global supply chains and reduce cargo volumes, with implications for customs revenue projections.
Despite these challenges, he said the Unified Customs Management System (B’Odogwu) is now fully operational across the nation’s ports, significantly improving customs administration, trade facilitation and revenue collection.
He added that the Service is strengthening revenue recovery measures, modernising customs operations and expanding capacity-building programmes in collaboration with international development partners, including the World Bank, the International Monetary Fund (IMF) and the World Customs Organization (WCO).
The Comptroller-General also disclosed that the Service has proposed a 2026 revenue target of approximately ₦1.235 trillion, with projected earnings expected from Free-on-Board (FOB) imports, VAT-related collections and receipts from capital projects.
He outlined a proposed personnel expenditure of ₦421.77 billion, overhead costs of ₦300.77 billion and capital expenditure of approximately ₦1.65 trillion to support infrastructure, ICT development, equipment procurement, project completion and settlement of contractual obligations.
Reaffirming the Service’s commitment to accountability and transparency, the Comptroller-General assured the Committee that the Nigeria Customs Service would continue to subject its operations to legislative oversight while strengthening trade facilitation and revenue generation.
He appealed to the Senate Committee to approve the proposed 2026 budget, expressing appreciation for its continued guidance and support.
